PNC Bank 2015 Annual Report Download - page 234

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ANALYSIS OF YEAR-TO-YEAR CHANGES IN NET INTEREST INCOME (a) (b)
2015/2014 2014/2013
Increase/(Decrease) in Income/
Expense Due to Changes in:
Increase/(Decrease) in Income/
Expense Due to Changes in:
Taxable-equivalent basis – in millions Volume Rate Total Volume Rate Total
Interest-Earning Assets
Investment securities
Securities available for sale
Residential mortgage-backed
Agency $ 63 $ (26) $ 37 $ (99) $ 40 $ (59)
Non-agency (34) (3) (37) (37) (36) (73)
Commercial mortgage-backed 30 (27) 3 10 (40) (30)
Asset-backed (2) 8 6 (10) 5 (5)
U.S. Treasury and government agencies 20 2 22 32 (12) 20
State and municipal (8) 5 (3) (5) 4 (1)
Other debt (4) 4 (16) 4 (12)
Corporate stocks and other 11
Total securities available for sale 107 (78) 29 (86) (74) (160)
Securities held to maturity
Residential mortgage-backed 75 (31) 44 53 1 54
Commercial mortgage-backed (20) (4) (24) (38) (14) (52)
Asset-backed (3) (3) (1) (1) (2)
U.S. Treasury and government agencies 1 1
State and municipal 15 15 54 (1) 53
Other (1) (1) (1) (1)
Total securities held to maturity 66 (34) 32 56 (4) 52
Total investment securities 171 (110) 61 (49) (59) (108)
Loans
Commercial 182 (236) (54) 228 (442) (214)
Commercial real estate 97 (120) (23) 140 (158) (18)
Equipment lease financing (18) (18) 9 (23) (14)
Consumer (104) (104) 18 (153) (135)
Residential real estate (4) (20) (24) (26) (26) (52)
Total loans 209 (432) (223) 399 (832) (433)
Interest-earning deposits with banks 37 37 36 1 37
Loans held for sale (2) (7) (9) (38) (20) (58)
Federal funds sold and resale agreements 1 (2) (1) 3 (6) (3)
Other 5 29 34 22 (12) 10
Total interest-earning assets $ 838 $(939) $(101) $829 $(1,384) $(555)
Interest-Bearing Liabilities
Interest-bearing deposits
Money market $14$60$74 $7$ 5$12
Demand 134 1 34
Savings 41418 1 3 4
Retail certificates of deposit (9) (9) (18) (20) (15) (35)
Time deposits in foreign offices and other time 1 (5) (4)
Total interest-bearing deposits 21 57 78 18 (37) (19)
Borrowed funds
Federal funds purchased and repurchase agreements (1) 1 (3) (3)
Federal Home Loan Bank borrowings 31 31 31 (3) 28
Bank notes and senior debt 50 (29) 21 44 (33) 11
Subordinated debt 6 11 17 31 (17) 14
Commercial paper (7) 3 (4) (6) 4 (2)
Other 8 (12) (4) 20 (3) 17
Total borrowed funds 86 (25) 61 107 (42) 65
Total interest-bearing liabilities 95 44 139 66 (20) 46
Change in net interest income $ 746 $(986) $(240) $767 $(1,368) $(601)
(a) Changes attributable to rate/volume are prorated into rate and volume components.
(b) Interest income includes the effects of taxable-equivalent adjustments using a statutory federal income tax rate of 35% to increase tax-exempt interest income to a
taxable-equivalent basis. The taxable-equivalent adjustments to interest income for the years ended December 31, 2015, 2014 and 2013 were $196 million, $189 million and $168
million, respectively.
216 The PNC Financial Services Group, Inc. – Form 10-K